Optional Nickname! wrote on Feb 8, 2013, 15:43:Project: Eternity and its funded sequel should be taking up all of Obsidian's time and resources right now.

You'd think all the math flying around the Psychonauts 2 thread would have cleared that up. With the amount of money they got from the Kickstarter, they can't afford to fund their entire staff. They need other projects going on, or they'll need to downsize. As I'm sure downsizing isn't their first choice, going after this seems like a good fit - especially considering the quality of KotOR II (barring the unfinished state).

Not just that, it's never a smart idea to have all your eggs in one basket as a development house. The amount of cancelled projects in a year would probably shock most people, it is always good to be working on different things so that you don't have to shutdown if some publisher isn't happy with your latest milestone or your kickstarter doesn't work out as planned.

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